Industry Leaders Maintain Positive Outlook Through 2025
It’s an understatement to say that the course of 2025 hasn’t run exactly as most people had anticipated. However, with new circumstances comes an opportunity to adjust one’s outlook if necessary while maintaining a positive viewpoint, and that’s the subject of the latest in Connect CRE’s 2025 Summer Leadership Series. In the first of two parts, you’ll read insights from Alison Beddard, CEO of CREW Network; Bob Hart, founder and CEO of TruAmerica Multifamily; and Greg MacDonald, co-founder and CEO at Ballast Investments.
Reflecting on developments since the beginning of 2025, has your overall outlook for the CRE market this year undergone significant changes? Have you observed shifts in your clients’ perspectives, and if so, what adjustments in the guidance are you and your team implementing to address these evolving viewpoints?
Alison Beddard: My overall outlook for the CRE market this year has trended more positive, specifically in the office sector. Despite the uncertainties of the global economy, U.S. tariffs, environmental hazards, there has been a slow and steady trend towards U.S. office vacancy reduction and a steady increase of absorption of office space, especially in Class A space. We’ve moved through the era of “Covid leasing decisions” back to longer lease terms, premium rents for premium spaces, highest quality form and function, with a heavy focus on cost, smaller footprints and a re-purposing of second-generation space.
Employee engagement is a necessary component of occupiers’ overall recruitment and retention strategies, of which office plays a role. While the office footprints are trending slightly smaller, they are more intentionally focused on employee experience. Landlords who have adjusted their strategies to incorporate the building as part of the overall tenant experience, will thrive and enjoy steady occupancy. The lack of new office construction in the U.S. over the past five years has helped reduce that vacancy rate, bridging the absorption and vacancy gap further to more equilibrium.
Multifamily and office investors engaging with local jurisdictions to evaluate, modernize and implement applicable zoning and planning modifications to spur better utilization of downtown real estate is an excellent opportunity to look at the evolving role of downtowns play in the overall ecosystem of cities. Incorporating more play and livable areas within downtowns can ultimately re-balance and ensure economic prosperity. Industrial real estate slowdown over the past 12 months continues to be challenged with decision making due to uncertainty surrounding tariffs, labor and manufacturing costs. The possibility of new surge of industrial manufacturing could lead to a boost in construction demand, but still uncertain at this time. Our CREW members are well equipped to offer a steady hand. CREW Network provide the wraparound resources for our clients, with all 36 disciplines of CRE represented, providing our clients with the best possible resources for advice and decision-making.
Bob Hart: We entered 2025 cautiously optimistic, and while macro volatility has persisted, we continue to see durable performance in workforce housing. TruAmerica’s portfolio occupancy of 94% is consistent with the national average, and we continue to see markets like Boston, San Diego, and Tampa (to name a few) perform extremely well. Our investment approach continues to emphasize discipline, capital structure flexibility, and targeting assets in submarkets with visible demand drivers and muted new supply. TruAmerica is focused on long-term value, not short-term timing.
Greg MacDonald: The big shift has been in timing, not direction. At the start of the year, there was widespread hope that rate cuts and improved liquidity would spark a rebound. That recovery is proving slower and more selective. What’s clear now is that operations—not just capital structure—will carry assets through this next cycle. Investors are recalibrating and placing more weight on execution and platform depth. We are controlling and optimizing what we are able to, and any dovish movements on interest rates or any other macroeconomic tailwinds will be an added bonus to our portfolio.
Institutional investors in particular seem to be adjusting their lens. How is that reshaping competitive dynamics in the multifamily sector?
Greg MacDonald: There’s a real shift away from “capital-first” firms toward platforms that can actually operate. That’s especially true in multifamily, where tenant experience, local compliance, and real-time responsiveness directly impact value. Investors want to work with groups that can not only acquire assets but truly manage, problem-solve, and outperform. Scale and accountability matter more than ever.